When Do Canada’s Prospectus Requirements Apply?

The Canadian Way – Your Guide to Canada's Securities Laws Volume 1, Number 8 – November 8, 2013

It's no surprise that the prospectus requirements of Canada's securities laws – that is, the need to use a Canadian prospectus or rely on a prospectus exemption – apply when a Canadian issuer sells securities to investors in Canada. And it shouldn't come as a surprise that Canada's prospectus requirements also apply when a non-Canadian issuer sells securities to investors in Canada. What might be surprising, however, is that Canada's prospectus requirements may apply if the issuer or a selling security holder is in Canada, even if the investors are not.

Canada's Prospectus Requirements